HARRY HUGHES, Governor

3263

deposits made upon the sale of cooperative interests in
residences to be held in escrow in a certain manner;
providing for consumer protection standards and enforcement;
providing that a cooperative interest is not a security or
investment security; providing that economic activity
organized under this Act shall not be deemed to be in
restraint of trade; providing for the applicability of
general corporate law to all cooperative housing
corporations; providing that a cooperative interest is
personal property; providing for the perfection of a
security interest in a cooperative interest; providing that
each unit shall have one vote under certain circumstances;
prohibiting a merger or consolidation under certain
circumstances; providing that the provisions of this Act are
statewide in their effect; providing for the applicability
of zoning and building regulations; providing for the
applicability of this Act; and generally relating to
cooperative housing corporations.

BY adding to

Article - Corporations and Associations

Section 5-6B-01 through 5-6B-20 to be under the new subtitle

"Subtitle 6B. Maryland Cooperative Housing

Corporation Act"
Annotated Code of Maryland
(1985 Replacement Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Corporations and Associations
SUBTITLE 6B.
MARYLAND COOPERATIVE HOUSING CORPORATION ACT

5-6B-01.

(A)  IN THIS SUBTITLE THE FOLLOWING TERMS HAVE THE MEANINGS
INDICATED.

(B)  "ARTICLES OF INCORPORATION" MEANS THE CHARTER BY WHICH
A COOPERATIVE HOUSING CORPORATION BECOMES INCORPORATED UNDER THIS
ARTICLE.

(C)  "BLANKET ENCUMBRANCE" MEANS ANY CONTRACT BINDING ON A
COOPERATIVE HOUSING CORPORATION AND CREATING A LIEN OR SECURITY
INTEREST OR OTHER ENCUMBRANCE OR IMPOSING RESTRICTIONS ON ANY
REAL OR PERSONAL PROPERTY OWNED BY THE COOPERATIVE HOUSING
CORPORATION.

(D)  "BYLAWS" MEANS THE DOCUMENT WHICH DETAILS AND GOVERNS
THE INTERNAL ORGANIZATION AND OPERATION OF THE COOPERATIVE
HOUSING CORPORATION.